The DJC reports the project is on hold because of "higher than expected" construction bids. A spokesman for the project's team, which includes hotelier Alex Calderwood, advertising executive John Jay, and developer Dave Gold, confirmed the project is on hold but did not have other details.

The investors want to turn the
21,400-square-foot commercial space into an Asian-and art-themed complex
aimed at attracting college students from abroad and
hipsters immersed in Portland's diverse food, art and alternative
culture.

The project will cost about $4.17 million, but 60 percent of that figure will come from public investment and only $706,000 in cash coming from the developers. The developers have also taken out a $1 million loan.

Portland Development Officials have long held to the belief that the risk is worth it because the Grove, located at 421 W. Burnside, has been a perennial eyesore. The PDC also believes the developers' big pitch: the project will help spur the
revitalization of Old Town/Chinatown.